AB InBev reported organic revenue growth of 4.9% in the third quarter of 2026, with reported sales increasing by 9.1% to USD 16.51 billion, benefiting from favorable currency movements. The world's largest brewer achieved a 3.9% organic increase in normalized EBITDA to USD 5.96 billion, meeting analysts' expectations, while revenue exceeded forecasts. Underlying earnings per share rose by 22.4% to USD 1.21.
However, rising operating expenses weighed on profitability. The normalized EBITDA margin contracted by 34 basis points on an organic basis to 36.1%, as higher commodity, packaging, distribution and transportation costs combined with increased sales and marketing investments. Cost of sales reached USD 7.21 billion, the highest quarterly level since 2023. The ongoing conflict in the Middle East has intensified pressure on energy, fuel and aluminum prices. Chief Financial Officer Fernando Tennenbaum told Reuters that certain expenses, particularly diesel costs in some markets, cannot be hedged effectively. He acknowledged that some cost pressures could persist into 2027.
Despite these challenges, total beverage volumes increased organically by 0.4% to approximately 142.3 million hectoliters. Beer volumes slipped by just 0.1%, while non-beer volumes expanded by 4.0%. The group reported record third-quarter sales volumes in 15 markets, including Colombia, Peru, Ecuador, South Africa, the Dominican Republic and India, demonstrating the resilience of its geographically diversified operations.
China remained the most significant weakness. Both revenue and sales volumes plunged by 16.8%, while normalized EBITDA declined by 30.5%. The company attributed the deterioration to unfavorable weather, weak demand in bars and restaurants, and inventory adjustments within its distribution network. AB InBev estimated that the broader Chinese beer market declined by a low-teens percentage within its operating regions, indicating that its own performance was weaker than the market. The difficulties extend a longer-running trend, as the brewer had already experienced an 11.8% volume decline in China during 2024 (inside.beer, 26.02.2025).
Performance in other regions was considerably stronger. Mexico delivered mid-single-digit volume growth and low-teens EBITDA growth, supported by market share gains and higher revenue per hectoliter. Colombia achieved mid-teens revenue growth and high-teens EBITDA growth, while Brazil increased revenue by 5.3% and EBITDA by 6.1%. In contrast, the United States recorded a 1.2% revenue decline, with shipments to wholesalers falling by 2.7%. US EBITDA decreased by 4.0%, reflecting higher commodity and transportation costs alongside additional marketing investments. European EBITDA also declined by a mid-single-digit percentage despite slightly higher revenue.
Premiumization continued to drive the group's growth strategy. Revenue from its above-core beer portfolio increased by 8.6%, with international performances particularly strong for Corona, Stella Artois and Michelob Ultra. Outside their respective home markets, these brands generated revenue increases of 20%, 19% and 50%. Corona achieved double-digit volume growth in 37 countries, while Michelob Ultra continued expanding across Latin America. Together with Budweiser, these brands form the backbone of the company's global portfolio.
Beyond premium alcoholic beer, alternative beverages contributed significantly to revenue growth. Alcohol-free beer sales increased by 35%, while the broader Beyond Beer portfolio, including ready-to-drink cocktails and other alcoholic beverages, grew by 19%. The company's portfolio of reduced-calorie, reduced-carbohydrate and alcohol-free products also recorded 19% revenue growth, illustrating changing consumer preferences and the growing importance of beverage categories outside traditional beer.
Chief Executive Officer Michel Doukeris reiterated that the company intends to maintain pricing broadly in line with consumer inflation, while adjusting increases to competitive conditions and purchasing power in individual markets. AB InBev expects a combination of disciplined pricing, premiumization and expansion into alternative beverages to sustain earnings growth despite pressure on production costs and traditional beer consumption.
Reflecting confidence in its cash generation, the board approved an interim dividend of EUR 0.40 per share, compared with EUR 0.15 in the previous year. By October 26, the company had also completed USD 2.6 billion of its USD 6 billion share repurchase program. AB InBev reaffirmed its full-year 2026 guidance for organic EBITDA growth of 4% to 8%, although continued weakness in China and rising input costs remain important risks to future profitability.
